Business slow? It's not just you.

How Recent ICE Raids Are Hurting California Businesses — Including Catalytic Converters 🚗

California’s recent Immigration and Customs Enforcement (ICE) worksite raids have reverberated far beyond farms and restaurants, reaching into sectors like automotive repair, supply stores, and even catalytic converter sales. Here’s what’s happening—and what the stats show:

1. Workforce Disruption Across Multiple Industries

• In California's farming regions—Ventura County and the Central Valley—ICE raids have led to 70% of field workers staying away, leaving crops unharvested and food rotting during peak season.

• Small restaurants, food trucks, and markets have reported revenue plunges. One LA vendor said daily income dropped from $2,000 to just $300 following immigration sweeps in the area.

2. Labor Shortages Ripple Into Blue-Collar and Automotive Sectors

• A recent report by the Bay Area Council Economic Institute estimates mass deportations could cost California’s economy up to $275 billion, heavily impacting construction, agriculture, and essential services.

• Over 60% of workers in landscaping, cleaning, and basic trades are foreign-born. Many skilled technicians in auto repair shops have either been detained or are choosing not to report to work, citing fear of enforcement actions.

3. Catalytic Converter Businesses Caught in the Crossfire

• The ripple effects are now being felt in the auto industry, especially in sectors dealing with emissions and vehicle compliance.

• Several of the largest exhaust distributors in California—including regional wholesalers who serve hundreds of muffler and exhaust shops—are reporting a significant drop in daily sales volume and incoming calls. One supplier shared privately that their order flow has slowed to a crawl, with small repair shops either reducing inventory or pausing purchases altogether due to reduced customer traffic and fewer available technicians.

• At the shop level, Hispanic-owned garages—especially those offering emissions-related services—have seen 20–30% fewer customers walking in since the raids began.

4. Broader Economic Feedback Loop

• With nearly one-third of California’s workforce being foreign-born, ICE enforcement efforts create systemic labor shortages that affect every layer of business—from food supply chains to automotive repair.

• Reduced spending in immigrant communities has also been documented, adding pressure to local economies that depend on working-class foot traffic and service-sector flow.

What This Means for Catalytic Converters & Related Businesses

Impact Area	Why It Matters	Real-World Effect
Technician availability	Labor pool disruption in skilled trades, especially auto techs	Fewer installations, reduced repair service capacity
Customer foot traffic	Fear and uncertainty reduce vehicle maintenance appointments	Shops down 20–30% in volume in impacted communities
Distributor slowdowns	Large suppliers see reduced orders from local repair networks	Delays in restocking, reduced revenue for entire pipeline
Revenue squeeze	Lower demand, fewer workers, and paused operations compound losses	Margins shrink, possible closures or downsizing

Final Thoughts

The ICE raids are not just a legal or immigration issue—they’re an economic force that is affecting small businesses up and down the supply chain. For those in the automotive sector, especially in emissions and catalytic converter sales, this is showing up as slower sales, fewer technicians, and weaker customer demand.

If your shop or business has been affected and you'd like to share your experience (anonymously or otherwise), we’d love to hear from you.

Stay safe. Stay ready.